Flotek Industries (NYSE:FTK) Shares Gap Up on Strong Earnings

Key Points

• Flotek beat quarterly expectations: Earnings were $0.34 per share versus analysts’ $0.21 estimate, while revenue of $114.35 million exceeded the $94.36 million forecast.
• Shares opened at $29.80 after closing at $24.84, but later traded at $25.6370.
• Analysts’ average rating is “Buy,” with a $34.67 average price target. In insider transactions, major shareholder Profrac Gdm sold 2.3 million shares while director Matthew Wilks bought about 1.32 million shares.

Flotek Industries, Inc. (NYSE:FTK - Get Free Report)'s share price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $24.84, but opened at $29.80. Flotek Industries shares last traded at $25.6370, with a volume of 169,388 shares traded.

The oil and gas company reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.13. Flotek Industries had a return on equity of 21.57% and a net margin of 12.97%. The business had revenue of $114.35 million during the quarter, compared to analysts' expectations of $94.36 million.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the company. Zacks Research raised Flotek Industries from a "hold" rating to a "strong-buy" rating in a report on Monday, October 19th. Lake Street Capital boosted their price target on Flotek Industries from $40.00 to $44.00 and gave the company a "buy" rating in a research note on Tuesday, September 15th. JonesTrading started coverage on shares of Flotek Industries in a research report on Thursday, July 9th. They set a "buy" rating and a $40.00 price objective for the company. Finally, Weiss Ratings cut shares of Flotek Industries from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating and four have issued a Buy rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Buy" and an average target price of $34.67.

Insider Buying and Selling at Flotek Industries

In other news, major shareholder Profrac Gdm, Llc sold 2,306,806 shares of the business's stock in a transaction on Friday, September 11th. The stock was sold at an average price of $26.01, for a total transaction of $60,000,024.06. Following the completion of the transaction, the insider owned 3,693,194 shares of the company's stock, valued at approximately $96,059,975.94. The trade was a 38.45% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Matthew Wilks acquired 1,319,493 shares of the company's stock in a transaction that occurred on Friday, September 11th. The shares were acquired at an average price of $26.01 per share, with a total value of $34,320,012.93. Following the completion of the transaction, the director owned 1,477,285 shares in the company, valued at $38,424,182.85. The trade was a 836.22% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 2.40% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Round Rock Advisors LLC grew its stake in shares of Flotek Industries by 203.4% during the second quarter. Round Rock Advisors LLC now owns 81,471 shares of the oil and gas company's stock worth $1,916,000 after buying an additional 54,620 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of Flotek Industries in the 2nd quarter valued at $1,160,000. Kornitzer Capital Management Inc. KS acquired a new stake in shares of Flotek Industries during the 1st quarter valued at $876,000. Squarepoint Ops LLC boosted its holdings in shares of Flotek Industries by 51.8% during the 2nd quarter. Squarepoint Ops LLC now owns 111,425 shares of the oil and gas company's stock valued at $2,621,000 after acquiring an additional 38,046 shares in the last quarter. Finally, Sei Investments Co. boosted its holdings in shares of Flotek Industries by 100.0% during the 1st quarter. Sei Investments Co. now owns 76,076 shares of the oil and gas company's stock valued at $1,291,000 after acquiring an additional 38,038 shares in the last quarter. Institutional investors and hedge funds own 10.90% of the company's stock.

Flotek Industries Price Performance

The firm has a market cap of $920.53 million, a P/E ratio of 25.67 and a beta of 1.55. The company has a current ratio of 1.78, a quick ratio of 1.50 and a debt-to-equity ratio of 0.31. The business has a 50-day moving average of $26.53 and a two-hundred day moving average of $22.12.

Flotek Industries Company Profile

Flotek Industries, Inc is a technology-driven company that develops chemistry and data solutions for the energy and industrial markets. Its offerings are designed to help customers improve operational performance, manage environmental impacts and use resources more efficiently.

Through its Chemistry Technologies business, Flotek provides proprietary green chemistry products for oil and natural gas exploration and production, industrial water treatment and other industrial applications.

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